Topic: Can you explain what blockchain is and how easy it is to understand it? (Read 245 times)

Blockchain is a network that own users. People that mining bitcoins almost allow it to exist because they get and sent transactions which are held between bitcoin wallets. There is no any servers in some company. Users are this servers. If there are no users network won't work. It's the main idea of blockhain that it is decentralized.

I think if you want to invest in btc you don't need to study deeper about blockchain. not unless you want to make one. all you need is the knowledge about trading and of course, the skills of profiting inside the cryptomarket exchange (when to sell, when to buy, etc). but just to give you a simplified knowledge about bc, from the word itself, it is a chain of blocks. it records transactions (anything with a value such as money, property, etc..) between 2 parties. or they call it pier2pier transaction. a block is a collection of data or records. it is chronologically arranged, readable by the public and once the data is registered, customizing or tampering it is almost impossible to do. there are 3 basic things inside the block. the Data itself, Hash(overall identification of the blocks and all of its contents. It is always unique), and previous hash. it basically works like this... let's say "sample1" is your 1st block, "sample2" is 2nd block, "sample3" is your 3rd block and so on. each block contains a)data, b)hash and c)previous hash.


sample1
a) data
b)s3qdfj (hash)
c)0 (since it is genesis block or new block)

sample2
a) data (new data is registered)
b) das3ka (hash/new block name)
c) s3qdfj (previous hash) (notice it calls the attention of your 1st block)

sample3
a)data (new data is registered)
b)jwk4j (hash/new block name)
c)das3ka (previous hash) (calling your 2nd block)

........ the new hash will always refer itself to the previous hash in order to be verified. once it is verified, it will be given a new hash name to be chain to the next block that will be created.
i hope it helped you somehow... cheers

Your friend has deceived you. You don't actually need to know much about technology to start investing.
Let me give you some examples.

Real estate investors don't have to know a lot about how exactly houses are built. First of all they should think about supply and demand for different kinds of real estate in different regions.

Or do you think that a stock exchange investor who owns some Tesla shares knows much about how these cars are made or how to drive (and charge) them? No! The only think he cares about is the price of his shares, so Tesla for him is just an asset, neither a company, nor Elon Musk a car.

Blockchain without third part.  that mean peer 2 peer.  you can directly make payment with another person . but every transaction will validate in block and cant be change cause if that change the result will be diffrent.( this is in payment)  but blockchain can be used in another aspect cause the block cant be change like notary.

Trading doesn't require any deep (and maybe even superficial) knowledge of blockchain work.

Trading skills are desirable, as well as understanding which exchanges are better, when to buy/sell cryptocurrencies, how to manage your wallet safety and so on. I'm sure, when you start trading, many questions will raise before you, but hardly ever they will be about blockchain. You will be more interested in current rate, the tendency of its change, the commissions of exchanges and so on.

Blockchain is necessary for bitcoin existence, but it is behind the scenes and you do not need to understand the principles of its work if you find them too difficult. Similarly, you do not need to be a banker or an accountant to interact with the bank. However, if you are just interested and you want to understand for yourself, it is commendable.

Many articles on cryptocurrencies are full of technical details - just skip them. You need something simple to understand the essence of the question. Maybe something like this or this.

In short, blockchain is a decentralized storage of data (transactions). Many people keep all or part of these data on their computers. A certain mechanism (consensus model or algorithm if you wish) is used to validate all new transactions, protect the blockchain from fraud actions/attacks and solve conflicts. In case of bitcoin, this mechanism is based on hard (resource-intensive) work which should be done to add a new transaction into the database, that's why bitcoin costs much and you can raise money on it.

Please do not take this description as complete and technically accurate. If you want to know more, you will have to deal with articles on the web.

You don't need to know the very complex technical side of Bitcoin if you just want to invest in it. There are people who know zero to nothing about the technology but they still own Bitcoins. All you need to know about it is that it is a decentralized payment system which means it is a bank being run by the users themselves without any third party interference. You get your account (wallet) where you save your money, and it is only you who know how much is stored in your account. You can send and receive money to any account (wallet) in your network (bitcoin blockchain) in seconds without any hassles.
Don't dig too deep. It is not necessary for everyone to know how the entire system works. A mobile user does not need to know how everything works in it, but they just need to understand how to use it, and they are good.

A blockchain (block chain) is a distributed database in which storage devices are not connected to a shared server. This database maintains an ever-growing list of ordered records called blocks. Each block contains a timestamp and a link to the previous block.

The use of encryption ensures that users can change only those parts of the block chain that they "own" in the sense that they have private keys without which writing to the file is impossible. In addition, encryption ensures that copies of the distributed block chain are synchronized across all users.

You don't need to understand how blockchain works to buy bitcoin.

But if you do, it's good for you.

Blockchain is a decentralized database, where everyone in the network have a full copy of all past transactions.

Also, everyone in the network, as long as you have a full node, will validate new transactions. So there isnt a single point of failure.

You can read it in bitcoin whitepaper, where Satoshi explains everything in a simple way.

https://bitcoin.org/bitcoin.pdf

In a simple words, blockchain is a immutable database or continuously growing record, called blocks. Each blocks are linked and secured using cryptography where each block contains hash of previous block. . A blockchain functions as a decentralized database that is managed by computers belonging to a peer-to-peer (P2P) network. Each of the computers in the distributed network maintains a copy of the ledger to prevent a single point of failure and all copies are updated and validated simultaneously. This makes blockchain technology more trustworthy. In past blockchain was commonly associated with digital currencies and bitcoins. Today, blockchain applications are being explored in many industries as a secure and cost-effective way to create and manage a distributed database and maintain records for digital transactions of all types.

 Blockchain is a technology that securely transfers data based on a very complex coding system, similar to a company's accounting ledger, where cash is closely monitored. In this case Blockchain is an accounting ledger operating in the digital domain.

I'll try to explain it to you using layman terms as much as possible. To those who will reply after me, just correct me if I am wrong. For now, Let's just say that blockchain in a sense is like a digital logbook which is always distributing information. That information (which is a data about a transaction) is always being broadcasted to a network of computers who validates it. Take note that those computers validating the transaction is not owned by a single entity or group, it is owned by many people in the community and the owners of those computers are called miners. After they validated the information, that verified data(which is permanent and cannot be altered by anyone) will be added to the existing data in the blockchain(the digital logbook) and will be stored on those network of computers. That's how blockchain works.

I want to invest in BTC but I do not know much about blockchain. Reading on the web is a lengthy explanation and hard to understand.
My friends told me that in order to invest in BTC I need to know about blockchain.